Conflict of Interest

Beginning January 1, 2006, new conflict-of-interest disclosure requirements passed by the 79th Texas Legislature in House Bill 914 (HB 914) became effective. HB 914 adds significant new disclosure requirements that affect school district trustees, superintendents, and actual or potential vendors to Texas school districts.

A "vendor" is not limited to an individual and could include a corporation, partnership, or other business entity. Section 1. Subtitle C, Title 5, Chapter 176 of the Local Government Code defines a vendor as a "person" who (1) contracts or seeks to contract for the sale or purchase of property, goods, or services with the district, or (2) is an agent of such a person in the person’s business with the district.

Pursuant to Local Government Code Section 176.006 - (Disclosure requirements for vendors and other persons; questionnaire) a person and/or vendor that contracts or seeks to contract for the sale or purchase of property, goods, or services with the school district must timely file a conflict of interest questionnaire with the records administrator of the school district no later than the 7th business day after the vendor begins contract discussions or negotiations with the school district or submits to the school district an application, response to a request for proposals or bids, correspondence, or another writing related to a potential agreement with the school district, if the person and/or vendor: (a) has an employment or other business relationship with a school district officer or a family member of the officer that results in the officer or family member receiving taxable income; or (b) has given to the school district officer or a family member of the officer one or more gifts, other than gifts of food, lodging, transportation, or entertainment accepted as a guest, that have an aggregate value of more than $250 in the 12-month period preceding the date the officer becomes aware that a contract has been executed with the school district or the school district is considering doing business with the person and/or vendor.